When minimum wage workers receive their paychecks next month, the new minimum wage hike will be reflected in their pay.

On Monday, Sept. 1, the Michigan minimum wage is increasing from $7.40 to $8.15, which is the first rate increase in six years.This increase is part of a change to Michigan law that will raise the minimum wage gradually by 25 percent. In 2018, minimum wage will be $9.25 in Michigan.

On Jan. 1, 2016, the minimum wage level will increase to $8.15. The next increase will be on Jan. 1, 2017, when it will go up to $8.90, and the final change will take place Jan. 1, 2018, and at that time, minimum wage employees will be making $9.25 per hour.

The legislation is part of the Workforce Opportunity Wage Age, Public Act 138 of 2014, which was made effective May 27. This act will be enforced by the the Michigan Occupation Safety and Health Administration's Technical Service Division's Wage and Hour Program.

The act will apply to Michigan employers with more than two employees age 16 or older, and allows an employee to pay a 16- to 19-year-old employee $4.25 per hour for the first 90 days of employment.

Act 138 also has provisions for Michigan employers to pay 85 percent of the minimum wage to 16- and 17-year-old employees, which will amount to $7.86 per hour when the 25 percent minimum wage increase is fully enacted.

Employers whose employees receive a tip credit on their minimum wage will still be admissible under certain conditions, such as if the employee is in a position to regularly receive tips; if the tips plus wages are not equal to or exceeding the minimum wage, the employer must pay the difference; and the employee must be informed of Act 138.

Employees making minimum wage and covered by the overtime provisions of the Workforce Opportunity Wage Act, must be paid one and a half times their regular rate of pay for overtime work.

With the increase in minimum wage, some local businesses in Ionia County may have to raise their prices to maintain profit margins.

"We have a lot of generous employers who are already offering the new minimum wage. Some businesses have indicated that they will need to raise prices slightly because of the increases, but they didn't think it would be enough for consumers to notice," said Ionia Area Chamber of Commerce Executive Director Tina Conner Wellman.

In the six years since the last minimum wage change, the economy in Michigan has undergone many changes, which have affected the ability of minimum wage earners to pay for necessities such as gas, groceries and heating, according Conner Wellman.

"Most people agree that the minimum wage is not a living wage, and that there should be different wages for first-timer workers and young earners. It's a good thing that they've decided to phase-in the new minimum wage," Conner Wellman said.

Page 2 of 2 - For more information, contact the Wage and Hour program toll free at 855-464-9243, or visit www.michigan.gov/MinimumWageAct.